Last night, I was having a beer at a friend's house when my whatsapp went 'DING' and a friend of mine who recently got into crypto asked, "why is crypto crashing, and should I get into NFTs?" - I told him we need to talk on the phone to talk about NFTs because it's complex, but this is what I said in relation to the crash.
I told him 1, we’ve been overbuying and crypto has gone parabolic in 2021, so a correction was inevitable and then 2, Kazakhstan is on fire, literally. It is the second-largest country in the world when it comes to mining; 3, we tend to think of BTC as a hedge against inflation, and it is, but the truth is it usually follows the same patterns and trends as tech stocks and finally 4, sell-offs bring more sell-offs, people who got in late panic and sell. And ‘whales’ keep buying - if you look at the historical chart, every few years, people who bought and thought they’d be millionaires within a year panic-sell and whales and large holders buy like mad. Hundreds of millions.
I added that we're likely looking at a few more weeks, or possibly months, of pain, and that BTC will eventually $1m, it's inevitable, but probably not before 10-12 years.
This was my answer, what would your answer be?
I've crossposted this article on my blog and Publish0x
